Is the appraisal system flawed? Is it helping customer experience or destroying it?

I would like to initiate a debate on if the appraisal system being followed in companies correct. I feel there is a flaw which will lead to a poor performance for the organization as a whole. The flaw I feel is that how can each and every person at all level appraised on an annual basis. It cannot be same for each and every employee. Its like saying:

An executive will take a year to show his performance

A team leader will take a year to turn around

A Manager a year to turn around

A GM will take a year to turn around

A top management person will also take a year to turn around

No wonder customer experience is taking a beating across the country and organizations. We all know that acquiring a new business is faster and easier than sustaining an old customer and ensuring customer experience. With start ups coming up with a sole purpose of starting a new business , show numbers and get funding no wonder customers are suffering.

Similarly, assuming that you have a management change or critical position getting replaced with a new one. Will the company also look at it in a similar fashion. Well the appraisal cycle indicates the same. Companies expect everyone to deliver within a year. So what is better get new customers in bulk and lose some in bargain for a top management or manager at a higher level.

We see many a few of the employees getting promoted every year and moved to different roles or places. So what are the actions the organization suggesting:

Bring business in one year in any way as I appraise you every year

Get a new role move every year

Who knows you will be there in the same location the next year

Plan short term only

Long term has no value in the organization

What is the impact very simple bring business leave the mess for the new person, the new guy comes does the same and the customer experience goes for a toss.

I would be happy if I could have some views on the above. Because me as a customer suffer a lot!!!